Mastering Retail Financing: Transforming Risk into Opportunity
The aftermath of the financial crisis spurred a flurry of growth in lending activities outside the traditional banking system. With banks reluctant to provide small businesses with loans, non-bank lenders, payment and e-commerce companies filled the gap.
However, with the economy slowing and credit tightening, the question is whether these so-called “branchless business models” can maintain relevancy in financial markets.
We believe they can – but only providing the right consumer finance tools are in place. The credit landscape in the current paradigm requires robust systems that manage lending in retail enterprises and corporate environment whilst empowering consumers to purchase products and pay in instalments.
Consumer Finance that Facilitates Financial Contracts
egabiFSI has developed and implemented a unique software – ConsumerPlus – that facilitates contracts with an agreed credit line between buyer and seller.
The potential impact is huge. Stores can scale sales volume by offering consumers the opportunity to obtain a commodity with immediate effect but pay in full over a reasonable period of time.
Moreover, the solution provides customers, merchants and donor companies with the benefits of sharing the profits of financial activities in a secure and controlled environment.
Consumer credit is not a new concept, but the tools to manage and facilitate retail trade finance is inadequate.Unsecured loans in the consumer market are putting a strain on national banks and the global economy.
It is of paramount importance for lenders, in their various forms, to install credit risk measures. Before authorising credit, financial lenders, retailers and corporate businesses must perform due diligence and quantify the risk of lenders defaulting on a loan.
Broadly speaking, our consumer finance tool delivers a comprehensive end-to-end solution that starts from defining the customer online, right through to providing credit approvals, collection and follow-up of related interest.
The software also takes into consideration the legal requirements installed by global regulators and we will continue to fully comply with changes to digital payments and consumer credit with easy-to-install updates.
Retail Trade Financing Software
A key benefit of digital financial solutions is automation. Mundane and time-consuming manual tasks can be eliminated by letting computers perform repetitive actions. This frees up your resources to concentrate on more important matters.
ConsumerPlus automates both front end and back end processes. In addition to enhanced performance, our advanced trade financing software provides operational stability and supports large scale sales volumes and business transactions.
To help protect lenders, there is a built-in interface to external credit bureaus and regulatory bodies. This facility provides accurate and up-to-date information on loanees and enables you to make informed decisions with regards to risk.
In addition, this feature reassures the lender that the software is fully compliant with all financial regulations. Through a Pre-built reports considering all regulatory requirements from both business and formatting perspectives.
Essentially, ConsumerPlus enables you to optimise your risk assessment measures and your overall operational costs. Mobile applications that serve both retail customers and merchants also provided both parties with a convenient, easy-to-operate option.
egabiFSI focus on delivering value-added solutions and services throughout the regulated banking sector and beyond. By placing tighter credit risk measures in the hands of front line lenders, we hope to help businesses remain flexible, competitive and profitable in a fast-changing landscape whilst protecting the stability of national and global economies.
